MaineHousing backs bill to seed middle-income housing programs; advocates debate scope and funding
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Summary
LD916 would let MaineHousing design programs and hold a fund to support rental housing up to 120% AMI and homeownership up to 150% AMI. MaineHousing endorsed the bill and asked for flexibility; some housing advocates criticized subsidy-focused approaches and asked for broader market-based solutions and clearer program safeguards.
Representative Tracy Geer introduced LD916 to authorize MaineHousing to develop and deliver programs to support middle-income housing: rental for households at or below 120% Area Median Income (AMI) and homeownership support up to 150% AMI. The bill would create an authorized fund at MaineHousing for capital grants or loans, with program details to be developed by the authority.
MaineHousing representatives testified in support and said existing financing platforms (for example mixed-income usage of the 4% tax-credit program) could be adapted, but stressed program design should be flexible and targeted geographically to areas with the greatest affordability gaps. MaineHousing noted the governor's supplemental budget includes a $10 million line for middle-income housing as a possible seed.
Some housing-advocacy groups opposed a small discretionary subsidy fund as the primary approach to the missing middle, arguing the income band is too narrow and that market-focused reforms would better scale production. The Manufactured Housing Association testified in support and said manufactured and modular housing could be part of the solution. Lawmakers pressed MaineHousing on program metrics, geographic targeting and whether funds would be recurring or one-time; MaineHousing said details would follow and that $10M could seed a program but is not sufficient alone to solve statewide needs.
